An Empirical Study on the Customer Reponses to Service Recovery in the Context of Service Failure

Abstract

This article examines how customers respond to various service

recoveries by investigating the moderating role of service failure severity.

Using a scenario-based experiment, the proposed model was tested in a

mobile phone service industry. The results show that under the core

service failure, high recoveries are more effective than low recoveries,

whereas low recoveries are as effective as high recoveries under the

peripheral service failure. The effects were assessed in terms of

customers intentions such as repurchase intention and word-of-mouth

communication.